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1.29.12 – (LAA) – Bankruptcy Update, Hotel Department Update, National Officer Run-off Election Ballots Mailed

Hotline Update

January 29, 2012


On Friday – the second monthly Omnibus hearing of the bankruptcy, when the court hears all motions filed earlier in the month – virtually all of the pending matters were unopposed or were rescheduled for the next Omnibus hearing on February 29. The disputed matters involved AMR’s management of its cash and the amount of the deposits it has to make to the various utilities with which it does business. The Debtors had also filed 18 applications to retain its professionals including financial advisors, investment banker and law firms. As we reported to you earlier, APFA filed an opposition to the retention of Rothschild, Skyworks and Perella Weinberg based on their requests for completion fees, which would be paid regardless whether the company successfully reorganized, and on overbroad indemnification provisions which would shield these firms almost entirely from liability for its actions. Because the applications were filed relatively late in the month, the Creditors Committee wanted more time to review them as well as to try to resolve with the Debtors any objections it may have. The court agreed to postpone its consideration of the applications until next month.

The Court also approved the Debtors’ elections under Section1110 of the Bankruptcy Code, which requires a debtor to decide within sixty days of the Chapter 11 filing whether it will assume or reject aircraft leases or financing agreements. With the agreement of the lessor or lender the debtor extend the sixty-day period. At this hearing the court approved the rejection of nine aircraft consisting of seven 757s, one MD-80 and one A-300. This brings the total of rejected aircraft to 33.

Boston Bankruptcy Information Base Visit

Tuesday January 31 – Boston

Embassy Suites Logan Airport


Over the coming weeks, we will visit the bases to provide you with information about bankruptcy. We will share what we know now and what to expect; we will address your concerns and answer your questions. We’ll be joining members of the APFA Negotiating Team, Retirement Department and Legal Counsel. As some of the bankruptcy proceedings may be scheduled suddenly and we can expect last minute changes, these Bankruptcy Informational Base Visits will most likely be announced on short notice.

Additional dates and cities will be announced as the schedule becomes available.

In Unity,
Laura Glading



Due to a higher number than usual of both long and short layovers scheduled in MIA for February, there was a substantial overage above the rooms allocated for the long layover hotel. APFA Hotel Coordinator Kelly Gambello is working diligently to ensure a resolution is reached promptly.

Although temporary relocations are not uncommon, this month’s situation is unique, not only due to the combination of increased layovers and TDY Pilots, but also the fact that an advance notice HI6 from the company did not go out as scheduled.

Kelly has been available for, and attempted to coordinate, meetings with the company. Most recently, Kelly has proffered and committed to a meeting this Tuesday with her counterparts at American and APA.

Weíll keep you updated on the situation via this Hotline.


The National Officer Run-off election ballots were mailed on January 26, 2012 and votes must be cast by 10:00 CT on February 24, 2012.

You must be dues current by 5:00 p.m. CST on February 21, 2012, and any dues promissory note/payment plan must have been active by January 26, 2012 in order to have your vote counted for the APFA National Officer Run-Off election ballot count on February 24, 2012.

To access the APFA BallotPoint Voting System by phone, call 1-800-698-3789 or 1-503-419-1145 or online at

For questions concerning the Elections and Balloting, or to obtain a duplicate ballot, contact the Ballot Committee at 817.540.0108 x8311 or via e-mail at

1004 West Euless Boulevard
Euless, Texas 76040

Phone: (817) 540-0108
Fax: (817) 540-2077


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